This Mumbai based brand is clocking 7 figures in their first year from simply reselling sneakers
This lucrative venture involves the acquisition of limited edition shoes, colloquially referred to as ‘copping,’ at retail prices, followed by their resale at premium rates. This practice is capturing the attention of an ever-increasing number of enthusiasts and enterprising individuals alike. Consequently, a surge of Gen Z and young millennial entrepreneurs has emerged, venturing into the sneaker resale business and even establishing their own sneaker marketplaces.
Param Minhas, aged 33, and his 25-year-old law graduate cousin, Prabal Baghla, co-founded Solesearch in 2021. Solesearch stands as a marketplace specializing in limited edition sneakers, streetwear, accessories, and collectibles. The brand’s notable success was further boosted when actor Ranvijay Singha also joined as one of the founders.
Reflecting on the trend, Param Minhas said, “It’s astonishing how many of our customers and sellers hail from tier-2 and tier-3 cities, which one might assume lack a sneaker culture. Surprisingly, these cities have emerged as significant hubs for sneaker culture, including places like Chandigarh and Jalandhar. We’ve witnessed a wave of young vendors from these regions who are capitalising on this trend.”
“The sneaker culture has provided college students with a platform to hustle, requiring minimal capital to begin reselling sneakers. With just INR 10,000, one can acquire their first pair of sneakers and potentially flip it for around INR 5 lakh. We’ve seen numerous success stories – individuals as young as 21-22 years old earning INR 8 to 10 lakh, and sometimes even more, solely through sneaker resale. One inspiring instance was a young woman from Jammu, who managed to cover her medical bills through sneaker sales on our platform, even during our initial non-monetised phase,” Minhas added.
Love for sneakers into a profitable business
“We are in the process of establishing a business that embodies our youthful aspirations—a brand that encapsulates the product accessibility and style we yearned for in our earlier years. Our endeavor is to bring this vision to India, fostering a sustainable enterprise centered around street culture, sneakers, and streetwear,” explained Minhas.
Meanwhile, for Baghla, this venture marked his inaugural foray into the professional realm. As a Gen Z law graduate with an enduring passion for sneakers since the age of 13, he was averse to conforming to the traditional 9-to-5 work routine. “I perceived this opportunity as a means to actively engage in something that genuinely intrigues me,” he elaborated.
According to the founders, the company has achieved remarkable success in its inaugural year, boasting a seven-figure revenue figure and experiencing a quadruple-fold growth since its inception. Minhas reflected on their initial journey, stating, “Approximately a year ago, we commenced with a revenue of around Rs 30-40 lakh solely from our Instagram page. With the launch of our website, our revenue doubled instantaneously. Since then, we have consistently expanded month by month, sustaining an unbroken growth trajectory.”
“Currently, we are nearing the two to Rs 2.5 crore mark this month alone. In terms of annual figures, our revenue and GMV have surged to nearly Rs 25-30 crore this year. We deliberately operated on a break-even basis until we secured funding, a strategy driven by a conservative growth approach. However, with the infusion of funds, we are channeling resources towards marketing, store expansion, and soon-to-be-launched application. Application development has been our primary focus recently,” said Minhas .
“Raising money for a startup in a new space is a big challenge,”
Solesearch in May this year, raised Rs 6.5 crore in their first round of funding. Venture Catalyst, Anthill Ventures, Cornerstone Venture Partners Fund, Rohan Nesho Jain (Nesho Corp), and others participated in the funding round. This funding will allow SoleSearch to expand its business and improve its authentication methods, reselling platform, and marketplace for other sneaker retailers, but doing that has been a little challenging for the founders.
“The business didn’t start as a business, right, the business started as a community on Instagram. So I think the first challenge was to be able to build this market. And on one side, we were educating young entrepreneurs like us are younger how to sell. We know 20-22-year-old kids who now make Rs 4 or Rs 5 lakh a month just reselling shoes. So just sort of, you know, building this from scratch in the Indian scene, was the biggest challenge to start with,” said Abhishek Bardia, Head of Marketing, Solesearch.
Funding proved a significant hurdle for the company “First two years of our business and we were Bootstrap. So we started with zero Capital, and we function for the first two years without a single penny of investment, which was the biggest, which was difficult, absolutely difficult, right? Because some of the other players in this space did raise investments. And they did have some sort of backing. But we had to figure it out completely ourselves, it was completely run by what we were generating,” recalled Baghla.
Another challenge that the company faced in terms of funding as sneaker reselling is an upcoming business in India “Raising money for a startup in a new space… finding individuals who connect with the vision beyond mere numbers… remained a challenge.” said Minhas.
The journey wasn’t without its emotional toll as well, “Dedicating oneself entirely to a single idea… comes with its share of challenges.” added Minhas.
Is the sneaker hype real in India?
The burgeoning craze for sneakers in India has played a pivotal role in propelling the growth of the brand. The ascent of sneaker culture across the nation, encompassing both street fashion and investment prospects, has taken the country by storm. Enthusiasts and enterprising individuals alike have been captivated, leading to the establishment of businesses centered around this footwear phenomenon.
Among the millennial and Gen Z demographics in India, the sector of sneaker reselling has witnessed rapid expansion over the past four years, now establishing itself as an emergent alternative investment market. A notable illustration can be found on Solesearch, where the Louis Vuitton x Nike Air Force 1, introduced in 2022, fetched resale prices ranging from $2,750 to $3,450 (equivalent to Rs 2.2 Lakh to Rs 2.8 Lakh), commanding values between Rs 6 lakh and Rs 10 lakhs.
Upon inaugurating their first Mumbai store, an impressive scene unfolded as eager individuals began lining up outside as early as 12:30 am, anticipating the store’s noon opening the following day. The early hours saw approximately 50 enthusiasts assembling, prompting a polite request for them to disperse due to potential issues with local authorities. Consequently, they were encouraged to return in the morning to queue up once again. By the time the store welcomed its first customers at 10 am, a remarkable 160 people had congregated, necessitating the issuance of tokens and organization of a roster for a seamless experience.
Sneaker resellers are carving out a distinct niche within the sneaker industry, akin to brokers who capitalize on reselling concert tickets at premium rates. This movement has led to sneakers emerging as a contemporary asset class, with a fervent interest from Indians who are eagerly immersing themselves in this cultural shift.
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